- Cut will take effect from 1800 GMT today
- Unusually high uncertainty about the economic outlook
- Actions to sanction Ukraine are not cost free for UK
- Next fiscal year debt interest spending is forecast at £83 billion
- First call on any extra funds will be lower taxes, not higher spending
- The increase in national insurance will go ahead
- Starting threshold for national insurance will rise by £3000 this year
- We will cut tax rates on business investment in autumn budget
- Basic income tax in 2024 will be cut to 19% from 20%
- Reduction in income taxes will cost £5 billion
- Borrowing in 22-23 is £16 billion more than we forecast in Oct
- OBR says real wages will fall in 2022 and 2023
Deficit forecasts:
- 21/22 deficit at 5.4% of GDP vs 7.9% in October forecasts
- 22/23 at 3.9% of GDP vs 3.3% prior
- 23/24 at 1.9% of GDP vs 2.4% prior
- 24/25 at 1.3% of GDP vs 1.7% prior
GBP has been under pressure today but it's steadied since he's began speaking.
